Shinhan Big Cycle Asset Allocation Fund Surpasses 30 Billion KRW in Assets Under Management

Shinhan Asset Management announced on the 4th that the 'Shinhan Big Cycle Asset Allocation Fund,' launched at the end of 2023 in line with the default option market for retirement pensions, has surpassed 30 billion KRW in assets under management.

The fund, which was 20 billion KRW at the end of last year, has attracted over 10 billion KRW in funds since the beginning of the year, mainly from the default option class as well as retail and retirement pensions. Amid growing uncertainty in the global financial markets, such as the Trump administration in the U.S. announcing tariffs, the fund's excellent performance is attributed to efficient asset allocation between the U.S. benchmark indices and domestic bonds.

As of the 3rd, the 'Shinhan Big Cycle Asset Allocation Fund' posted a 6-month return of 6.67%, outperforming the domestic and international benchmark indices over the same period, including KOSPI (-2.18%), KOSDAQ (-10.14%), S&P 500 (-0.68%), and NASDAQ 100 (-1.81%).

The Shinhan Big Cycle Asset Allocation Fund continuously invests 60% in U.S. stocks, which will lead the global economy, and 40% in domestic bonds, which can pursue stable interest income. It is designed as an optimized product for pension investment through efficient asset allocation. It was designed with a synthetic total expense ratio of 0.22%, one of the lowest levels in the industry among default option funds launched domestically. This low fee compared to the average total expense ratio of similar types (0.66%) maximizes the compound effect of long-term investment.

In addition to asset allocation using U.S. benchmark indices and the lowest fees, investments in U.S. stocks and ETFs are made with unhedged exposure (UH) to reduce long-term volatility and currency hedging costs. Since no additional currency hedging costs occur during the investment period, the fund is regarded as the most suitable for default option investments in the market.

Ryu Ji-eun, Head of WM Marketing Planning at Shinhan Asset Management, said, "Considering the long investment period characteristic of retirement pension funds, it is advantageous to choose funds with clear management strategies and low fees." She added, "The Shinhan Big Cycle Asset Allocation Fund is optimized for default options from product design to asset allocation and maintains stable returns. We hope it will be used as an investment tool to prepare retirement funds."